Analyst predicts recovered OCC price increase over next two years

Analyst predicts recovered OCC price increase over next two years

By Editorial Staff, Resource Recycling

Dec. 18, 2013

A widely respected recycling market analyst says the value of old corrugated containers (OCC) will grow more than 40 percent between now and the end of 2015.

Hannah Zhao, an analyst at RISI, predicts the domestic value of OCC (subscription required), which was approximately $109 per short ton this year, will rise to an average of $135 per ton in 2014, then move upward again to $146 per ton the following year. The value of OCC purchased by domestic mills fell about $5 per ton in 2013.

Zhao bases her calculation on a tightening supply due to an expected increase in domestic recycled containerboard output in 2014 and 2015, plus a growing export market for bales from the U.S.

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